Question No 04 Chapter No 10

04.Following balances were extracted from the books of Ravinder Associates as of 31st March 2017 :

 Name of Accounts Rs Name of Accounts Rs Sundry Debtors 4,10,000 Stock (April 1, 2016) 2,30,0000 Sundry Creditors 80,000 Premises 12,00,000 Rent and Taxes 48,000 Fixtures & Fittings 3,10,000 Purchases 34,00,000 Bad Debts are written off 8,000 Sales 56,00,000 Rent received from sub-let of part of premises 30,000 Trade Expenses 12,000 Loan from Mukul 1,50,000 Returns Outwards 80,000 Interest on Mukul’s Loan 15,000 Returns Inwards 1,20,000 Drawings 40,000 Expenses 4,000 Cash in hand 75,000 Motor Vehicles 6,50,000 Stock on 31st March 2017 3,80,000 Electricity 25,000

You are required to prepare the trial balance treating the difference as his capital.

## The solution of Question No 04 Chapter No 10: –

 Trail Balance A/c Particulars J.F. Debit Credit Sundry Debtors A/c 4,10,000 Sundry Creditors A/c 80,000 Rent & Taxes A/c 48,000 Purchases A/c 34,00,000 Sales A/c 56,00,000 Trade Expenses A/c 12,000 Return Outwards A/c 80,000 Return Inwards A/c 1,20,000 Expenses A/c 4,000 Motor Vehicles A/c 6,50,000 Electricity A/c 25,000 Opening Stock (on April 01, 2004) A/c 2,30,000 Premises A/c 12,00,000 Fixture & Fittings A/c 3,10,000 Bad Debts written off A/c 8,000 Loan from Mukul A/c 1,50,000 Interest on Mukul’s Loan A/c 15,000 Drawings A/c 40,000 Cash in Hand A/c 75,000 Rent received from Sub-let of part of Premises A/c 30,000 Capital (Balancing Figure) A/c 6,07,000 65,47,000 65,47,000

Note: Closing Stock of Rs 3,80,000 will not appear in Trial Balance, because it has not been accounted yet

Trial Balance | Explanation | Methods | Examples

Comment if you have any question.

Also, Check out the solved question of previous Chapters: –

• Chapter No. 1 – Introduction to Accounting
• Chapter No. 2 – Basic Accounting Terms
• Chapter No. 3 – Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards(IFRS)
• Chapter No. 4 – Bases of Accounting
• Chapter No. 5 – Accounting Equation
• Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
• Goods and Services Tax(GST)
• Chapter No. 7 – Origin of Transactions – Source Documents and Preparation of Vouchers
• Chapter No. 8 – Journal
• Chapter No. 9 – Ledger
• Chapter No. 10 – Special Purpose Books I – Cash Book
• Chapter No. 11 – Special Purpose Books II – Other Books
• Chapter No. 12 – Bank Reconciliation Statement
• Chapter No. 13 – Trial Balance
• Chapter No. 14 – Depreciation
• Chapter No. 15 – Provisions and Reserves
• Chapter No. 16 – Accounting for Bills of Exchange
• Chapter No. 17 – Rectification of Errors
• Chapter No. 18 – Financial Statements of Sole Proprietorship
• Chapter No. 19 – Adjustments in preparation of Financial Statements
• Chapter No. 20 – Accounts from incomplete Records – Single Entry System
• Chapter No. 21 – Computers in Accounting
• Chapter No. 22 – Accounting Software – Tally
• Chapter No. 5 – Accounting Equation
• Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
• Goods and Services Tax(GST)
• Chapter No. 8 – Journal
• Chapter No. 9 – Ledger
• Chapter No. 10 – Special Purpose Books I – Cash Book

T.S. Grewal’s Double Entry Book Keeping